Here's the Scenario:
Smith Corporation purchased 225,000 shares of Barnes Corporation common stock on January 2, 20X8 for $540,000.
Barnes Corporation has 600,000 shares outstanding. Barnes Corporation earned net income of $360,000 and paid dividends of $100,000 during 20X8.
The question is, how much revenue will be recorded by Smith Corporation from its investment in Bares Corporation?
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